AU Small Finance Bank submits Application for Universal Banking License to RBI

AU Small Finance Bank submits Application for Universal Banking License to RBI

AU Small Finance Bank (AUSFB) submitted an application to the RBI for a universal bank license on Tuesday. In April, the RBI requested proposals from small finance banks that met specified criteria, including a minimum net worth of Rs.1,000 crore, to become regular or universal banks.

AUSFB filed an application with the central bank on September 3, 2024, asking for approval for a voluntary change from a small finance bank to a universal bank, according to a BSE filing.

In November 2014, the RBI announced guidelines for licensing small finance banks (SFBs) in the private sector.

According to the RBI’s April guidelines, an SFB intending to become a universal bank must have a minimum net value of Rs.1,000 crore at the end of the previous quarter and its shares must be listed on a recognised stock exchange.

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It should also have a net profit in the last two years, as well as gross and net NPAs of less than or equal to 3% and 1%, respectively, in the last two years.

The Jaipur-based AUSFB bought Fincare Small Finance Bank, and the merger went into effect on April 1 of this year. The amalgamated entity’s overall business mix now exceeds Rs.1.8 lakh crore.